LOTOS has been committed to investments in low-emission technologies, such as replacement of heating oil in the cogeneration plant with natural gas and modern hydrogen production technologies, which allow its carbon dioxide emissions to be maintained at a fixed and relatively low level. Grupa LOTOS is aware how important the transformation of the operating model to a “greener” one is for the climate and the environment.
Our capital
Management in the LOTOS Group is a strategic plan based on key efficiency indicators
Grupa LOTOS is aware of its impact on its surroundings and the environment, therefore as a socially responsible company it applies ethical principles in its operations and follows international standards, such as ISO 26000, in the area of organizational governance, human rights, labor practices, environment, fair operating practices, consumer issues, social engagement and local community development. The Company supports the achievement of the Sustainable Development Goals (SDGs) and adheres to the UN Global Compact Principles.
In the process of creating common value, great weight is attached to effective management of the owned capitals and proper use of their potential and opportunities in individual segments of the group’s business. LOTOS has managed all six capital types in a consistent manner, since only such an integrated approach can bring the best effects, for both the company and its environment.
Robust management and building of financial capital allows the LOTOS Group to invest in non-financial resources, which over time generate further profits. For years, the company has been consistently investing in the improvements of production and refining processes, employee development, building the innovation culture within the organization and development of innovative products and implementation of new ideas in cooperation with partners. The Company has been continuously improving its solutions aimed at reducing its environmental footprint. LOTOS also strives to exert a positive social impact through its charity and sponsorship activities.
Environmental capital
One of the elements of this transformation is the 12 charging stations for electric vehicles. Grupa LOTOS also implements the Pure H2 project, which aims at selling very high purity (99.999%) hydrogen for transport purposes, as well as the Green H2 project of building a large-scale plant consisting of electrolyzers, hydrogen storage facilities and fuel cells or hydrogen turbines. Constant monitoring is a very significant factor, which has been achieved by building a continuous emissions monitoring system (CEMS). LOTOS is also involved in internal climate improvement initiatives, such as the “Cooperation Agreement for the development of the biogas and biomethane in Poland” or creation of the Pomeranian Hydrogen Vallen.
Details of the capital | Management of the capital | Effects achieved | Change |
---|---|---|---|
10,197,000 t Total consumption of crude oil |
The company’s refining and production activities are conducted in accordance with environmental protection requirements. High-quality products are manufactured on the basis of minimizing the negative impact on the environment, also at the stage of their production. The development plans of the LOTOS Group include innovative technological projects that provide for rational utilization of natural resources. | 9,914,000 t Total consumption of crude oil |
Decrease by 2.8% in the volume of crude oil processing |
11,138,626 t Production volume |
Half-overhaul shutdown in March 2021 (the second half of the overhaul took place in March-April 2022), where 2020 was a year of full oil processing. | 11,004,753 t Production volume |
A decrease in the production volume by 133 873 t |
9,650,144.07 Mwh Total energy consumption | 23 optimizations were identified and implemented in 2021. The effect of implementing 22 optimizations in 2020 was maintained. | 9,042,362.72 MWh | Reduction of energy consumption 607 781,35 MWh |
2,090,948 t CO2e Total direct greenhouse gas emissions |
There were two factors that affected CO₂ emissions in 2021:
|
2 052 426 t CO2e | Down by 1.8% |
1.18 MWh/t primary energy consumption per ton of product |
The decrease in the energy intensity indicators was influenced in 2021 by the half-overhaul, which covered installations of the 10+ Program, as well as current projects optimizing consumption of utilities by the process. | 1.1 MWh/t primary energy consumption per ton of product |
Down by 5.9% |
0.22 Mg CO2e /Mg greenhouse gas emissions per ton of oil processed |
There were two factors that affected CO₂ emissions in 2021:
|
0.219 Mg CO2e /Mg greenhouse gas emissions per ton of oil processed |
Down by 0.5% |
Production capital
This ranking lists refineries around the world and evaluates their performance in many aspects such as technology, and costs of energy and operations.
In 2021, diesel fuel had the largest share in the production structure. About 6 million tons of this product were produced, 3.8% more than in the previous year. The products obtained as a result of crude oil processing are sold in Poland and abroad, in the wholesale channel and to retail customers through the Group’s own network of service stations.
Details of the capital | Management of the capital | Effects achieved | Change |
---|---|---|---|
513 service stations |
|
520 service stations |
Up by 1.4% |
23 Service Areas (MOPs) |
|
30 Miejsc Obsługi Podróżnych | Up by 23% |
33.6% share in the domestic fuel market |
|
32,2% share in the overall domestic fuel market. |
Down by 1,4 %. |
20.3 thous. boe /day Crude oil and natural gas production volume |
|
17.3 thous. boe /day Crude oil and natural gas production volume |
Down by 14.6% |
Financial capital
In 2021, the LOTOS Group generated operating profit plus depreciation and amortization net of one-off events (so-called Clean EBITDA LIFE) at PLN 4,229.1 million, compared to PLN 1,356.6 million in 2020 (up by 211.7%).
Details of the capital | Management of the capital | Effects achieved | Change |
---|---|---|---|
PLN 20,908.6 million Total revenue |
The increased revenue was driven mainly by significant increase in quoted prices of oil products on global markets. | PLN 33,123.6 million Total revenue |
Up by 58.4% |
PLN 1,466.9 million Consolidated gross profit |
The increased revenue was driven mainly by significant increase in quoted prices of oil products on global markets. | PLN 6,348.5 million Consolidated gross profit |
An increase by PLN 4,881.6 million |
PLN -1,396.8 million Operating result |
The increase in the operating result was driven primarily by growing gross profit due to the upward trend of oil prices and high cracks for oil products, as well as a positive result on other operating activities related mainly with the reversal of impairment allowances in the Exploration & Production segment. | PLN 4,477.9 million Operating result |
Up by PLN 5,874.7 million |
PLN 11,573.8 million Level of equity |
The increase in equity was driven by: an increase in retained earnings by PLN 3,217.2 million, a revaluation reserve of PLN -10.0 million, as well as a PLN 41.8 million increase in the positive translation reserve and the negative foreign exchange differences recognized in the cash flow hedge reserve adjusted for the tax effect in the amount of PLN -28.9 million. | PLN 14,793.9 million Level of equity |
An increase by 27.8% |
PLN 457.4 million Capital expenditures in the Refining & Marketing segment |
The increase in capital expenditures in the Refining & Marketing segment was driven mainly by increased capex levels in the following projects: development of the service station network, rolling stock, spare parts, catalysts, Oil Hydrocrackers, fuel depot, redevelopment of the Claus unit. |
PLN 645.3 million |
Up by PLN 187.9 million |
PLN 384.8 million Capital expenditures in the Exploration & Production segment |
The increase in capital expenditures in the Exploration & Production segment is an effect of changes primarily related to the projects: Norway Heimdal, Norway Sleipner, Norway YME and deposit B3 and deposit B8. |
PLN 402.6 million |
Up by PLN 17.8 million in the Exploration & Production segment |
Human capital
Details of the capital | Management of the capital | Effects achieved | Change |
---|---|---|---|
5,473 Total number of employees |
The number of employees was maintained at the fixed level as a result of:
|
5,472 Total number of employees |
Constant number of employees maintained |
11% Percentage of new employees across the group |
The Company implements the principles of diversity management and equal treatment policy, with respect for a diverse, multicultural society and places special emphasis on equal treatment. | 5% Percentage of new employees across the group |
Employee turnover reduced by 6% |
9.61 Average hours of training per employee |
In 2021, the organization developed among its employees both industry-specific competencies – specific for the oil&gas industry, specialized ones – required for a given position, managerial, linguistic, as well as soft skills, enabling and catalyzing the use of hard competencies. | 13 Average hours of training per employee |
Average hours of training up by 3.39% |
37 Number of accidents involving employees |
All accidents were individual accidents. Most had to do with operating machinery and equipment and walking. | 47 Number of accidents involving employees |
Number of accidents among employees up by 10 |
Social capital
As part of the cooperation with the Polish Tennis Association, the LOTOS Rackets National Tennis Popularization Program. Overall, nearly 8000 children and youths took part in all the programs, which marks an increase of nearly 1000 children relative to the previous year. In 2021, Grupa LOTOS became a partner of the PolSKI Mistrz (Polish Champion) Program, which has been supporting the development of downhill skiing and snowboarding in Poland for three seasons. Grupa LOTOS also continued its cooperation with 8 independent, promising athletes who have already achieved numerous successes. Among the Grupa LOTOS athletes was Karolina Naja – kayaker, Olympic medalist, who won two medals at the 2021 Summer Olympics. Projects related to training children and youths are investments in young, ambitious and talented athletes who will be the future strength of the Polish sport.
Grupa LOTOS is socially conscious and responsible and is aware how important is to shape the attitudes of current and future generations. The sponsorship activities undertaken not only support professional sports at the adult level, but also projects designed to develop children and youths. The awareness of the potential effects of activities dedicated to the youngest sports enthusiasts contributes to a positive perception of the company as responsible for the development of not only Polish sport, but also our society.
Key social programs implemented in 2021:
2021 was another year of the coronavirus pandemic. The Company allocated a total of over PLN 12 million to fight the pandemic and acquired and donated such personal protective equipment as: 500 thousand protective suits, 300 thousand visors and 100 thousand shoe protectors and a temporary hospital was organized in the exhibition halls of the AMBEREXPO in Gdansk.
Details of the capital | Management of the capital | Effects achieved | Change |
14 Number of social action projects |
Through active communication with our stakeholders, we seek to mitigate the risks and nuisances associated with the company’s day-to-day operations and actively respond to the needs of our stakeholders. |
22 social and environmental action projects. |
Up by 57% |
148 Number of subsidies awarded by the LOTOS Foundation |
148 | No change | |
PLN 13.3 million The amount of aid contributed by the Foundation |
The LOTOS Foundation provided subsidies in the amount of PLN 13,307,415.88, of which half supported the fight with COVID-19. | PLN 5.4 million | Down by 38% |
PLN 764 million Taxes paid |
PLN 762.11 million | Down by 1,9 mln PLN |
Intellectual capital
Grupa LOTOS has been actively contributing to projects associated with the new generation of alternative fuel, including those related to hydrogen and LNG/CNG. The Pure H2 project and the Feasibility Study on the Construction of a small scale LNG Terminal in Gdańsk and Innovative LNG Bunkering Facilities received EU funding as part of the Connecting Europe Facility (CEF).
In 2021, Grupa LOTOS prepared and adopted documents on the Strategic directions for innovation and the Strategic Research Agenda.
Details of the capital | Management of the capital | Effects achieved | Change |
131 Number of undertakings producing effects in the Efficiency Improvement Program |
Project workshops: Carried out with the management of GL Group companies and involved individuals who wanted to improve efficiency of their activities and reduce costs in the organization.
Training path: Lean Six Sigma Yellow Belt accredited and certified training path – each certificate issued represents a cost-reducing solution to an actual problem within the organization. So far, 11 certificates have been issued to 36 individuals who underwent the training; the projects have brought savings of PLN 600 thousand. In Q2 2022, savings of PLN 1 million are planned from the training alone.
|
195 Number of undertakings producing effects in the Efficiency Improvement Program |
+ 49% |
PLN 52.9 million |
PLN 257.4 million Sum of pro-efficiency projects (195 projects producing effects in 2021) |
+ 110% | |
PLN 52.9 million Including cost optimization projects (114 projects) |
PLN 91.8 million Including cost optimization projects (176 projects) |
+ 74% |